Thursday, January 08, 2009

(ONCE IT WAS A DREAM HOUSE FOR A YOUNG ASPIRANT)B Ramalinga Raju has tendered his resignation as chairman of Satyam Computer Services startling confessions of fraudulence in company's books of accounts. Satyam's balance sheet as on Sep 30, 2008, carries non-existent cash and bank balances of Rs 5,040 crore. It also carries an accrued interest of Rs 376 crore which is totally non existent, and understated liability of Rs 1,230 crore on account of funds arranged by him. It also has over stated debtor’s position.

( RAM LINGA RAJU : THE OSAMA BIN LADEN FOR ECONOMIC WORLD )

“Way back in 2004, American media had reported that it was not only dreaded terrorist Osama whom the Americans were afraid of, but Ramalinga Raju was a feared man too as millions of jobs were being outsourced to Indian companies like Satyam.” (News Sources)

"Having been a job-creator for corporate India for years, Raju has now turned into a money-grabber through financial bungling and corporate governance malpractices," (brokerage firm SMC Global's Vice President Rajesh Jain told PTI. )

(YESTERDAY IT WAS A SYMBOL OF HOPE : TODAY IT IS FOR DESTRUCTION )

On January 6 , Mr. B Ramalinga Raju, who founded Satyam, India’s fourth largest IT firm , more than two decades ago and just three months ago, received a Golden Peacock award from a group of Indian directors for excellence in corporate governance, has tendered his resignation as chairman of Satyam Computer Services startling confessions of fraudulence in company's books of accounts showing balance sheet as on Sep 30, 2008, carries non-existent cash and bank balances of Rs 5,040 crore and also carries an accrued interest of Rs 376 crore which is totally non existent, and understated liability of Rs 1,230 crore on account of funds arranged by him. It also has over stated debtor’s position.Prior to this resignation, the consequent happenings with Satyam are as follows:On Dec. 16 –Raju announced his plan to buy two building firms part-owned by his sons for $1.6 billion.and later after 55 percent plunged in the company's share price in hectic U.S. trading , he turned down the deal just in mere 12 ours .On Dec. 23 - Satyam barred from business with the World Bank for eight years for providing Bank staff with "improper benefits". Its shares fall another 14 percent to their lowest in more than 4-½ years. Mangalam Srinivasan, an independent director, resigned from Satyam on Dec. 26 .followed by three more of directors on Dec. 29 .after resignation of Mr.Raju on Dec.06, the Satyam scrip crashed, losing 77.69 percent of its value to close at Rs.39.95 over its close of Rs.179.10 on previous day . The Sensex of the Bombay Stock Exchange (BSE) was down 7.31 percent or 755.62 points to 9,580.31 points, after opening higher than previous day’s close of 10,335.93 points. The broader Nifty index of the National Stock Exchange (NSE) closed at 2,920.4 points, 6.18 percent lower than its previous close.This case for India is similar to what happened to Enron in the U.S. Raju’s irresponsible fraudulence may threaten future foreign investment flows into Asia's third-largest economy and casts a cloud over growth in its once-booming outsourcing sector along with 53,000 Satyam employees may feared to lose their jobs.